A perfect practice exam is far less confusing to a student, and there is no question that incorrectly marked answers keep a learner off balance. But the other side to that coin is that a few curve balls, perhaps 3-5 in 100 questions, discourages memorization and promotes discussion in class.
Ultimately whether or not practice questions are an effective learning and assessment tool is almost entirely left up to the way a student handles them. Memorizing is actually the hard way to do things, and it leaves the student rigid and unprepared if the actual test is off by as much as one word on a relatively simple question.
Understanding the exam concepts is the shortcut, because much of the time even questions where all the noise and trivia are not familiar to the test taker, the answer can be figured out from knowing what the question is trying to communicate.
Many will disagree and I will be criticized on evaluations for having practice exams with a few errors in them, but I am for anything that requires the student have to assess their own confidence in how they are really understanding the material. This is not to say there will always be errors in my tests, but there might be, I'll never tell.
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